When Will ReFuels N.V. (OB:REFL) Breakeven?

ReFuels N.V. (OB:REFL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. ReFuels N.V. engages in the design, development, and operation of biomethane and compressed natural gas (CNG) refueling stations in the United Kingdom and rest of Europe. The kr779m market-cap company posted a loss in its most recent financial year of UK£21m and a latest trailing-twelve-month loss of UK£21m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on ReFuels' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for ReFuels

Expectations from some of the Norwegian Oil and Gas analysts is that ReFuels is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of UK£5.7m in 2027. So, the company is predicted to breakeven approximately 3 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 111%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for ReFuels given that this is a high-level summary, though, take into account that typically energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 18% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of ReFuels to cover in one brief article, but the key fundamentals for the company can all be found in one place – ReFuels' company page on Simply Wall St. We've also put together a list of important aspects you should look at:

1. Historical Track Record: What has ReFuels' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on ReFuels' board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.